Note 2. Investments

The following tables set forth the carrying value, gross unrealized gains, gross unrealized losses and amortized cost of the Company’s investments, aggregated by type and industry, as of December 31, 2014 and December 31, 2013.

Investments were comprised of the following:

	2014
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	33,898	$	1,459	$	30	$	32,469
Obligations of states and political subdivisions		11,459		681		—		10,778
Corporate securities:
Utilities and telecom		13,980		2,355		—		11,625
Financial services		59,224		3,404		588		56,408
Other business – diversified		70,139		2,076		1,830		69,893
Other consumer – diversified		25,388		332		547		25,603
Total corporate securities		168,731		8,167		2,965		163,529
Redeemable preferred stocks:
Financial services		608		8		—		600
Other consumer – diversified		192		—		—		192
Total redeemable preferred stocks		800		8		—		792
Total fixed maturities		214,888		10,315		2,995		207,568
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,403		439		—		964
Financial services		6,083		739		—		5,344
Other business – diversified		226		179		—		47
Other consumer – diversified		11,212		5,598		—		5,614
Total equity securities		18,924		6,955		—		11,969
Other invested assets		2,995		—		—		2,995
Policy loans		2,202		—		—		2,202
Real estate		38		—		—		38
Investments in unconsolidated trusts		1,238		—		—		1,238
Total investments	$	240,285	$	17,270	$	2,995	$	226,010

	2013
	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Amortized Cost
Fixed maturities:
Bonds:
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	17,240	$	576	$	210	$	16,874
Obligations of states and political subdivisions		7,611		402		17		7,226
Corporate securities:
Utilities and telecom		16,532		1,353		7		15,186
Financial services		50,531		1,736		320		49,115
Other business – diversified		70,326		870		2,906		72,362
Other consumer – diversified		36,712		391		1,745		38,066
Total corporate securities		174,101		4,350		4,978		174,729
Redeemable preferred stocks:
Financial services		2,159		4		41		2,196
Other consumer – diversified		192		—		—		192
Total redeemable preferred stocks		2,351		4		41		2,388
Total fixed maturities		201,303		5,332		5,246		201,217
Equity securities:
Common and non-redeemable preferred stocks:
Utilities and telecom		1,474		510		—		964
Financial services		5,761		514		560		5,807
Other business – diversified		178		131		—		47
Other consumer – diversified		14,477		8,863		—		5,614
Total equity securities		21,890		10,018		560		12,432
Other invested assets		2,123		—		—		2,123
Policy loans		2,369		—		—		2,369
Real estate		38		—		—		38
Investments in unconsolidated trusts		1,238		—		—		1,238
Total investments	$	228,961	$	15,350	$	5,806	$	219,417

Bonds having an amortized cost of $10,615 and $10,101 and included in the tables above were on deposit with insurance regulatory authorities at December 31, 2014 and 2013, respectively, in accordance with statutory requirements.

The following table sets forth the carrying value, amortized cost, and net unrealized gains (losses) of the Company’s investments aggregated by industry as of December 31, 2014 and 2013.

	2014						2013
	Carrying Value		Amortized Cost		Unrealized Gains		Carrying Value		Amortized Cost		Unrealized Gains (Losses)
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	33,898	$	32,469	$	1,429	$	17,240	$	16,874	$	366
Obligations of states and political subdivisions		11,459		10,778		681		7,611		7,226		385
Utilities and telecom		15,383		12,589		2,794		18,006		16,150		1,856
Financial services		65,915		62,352		3,563		58,451		57,118		1,333
Other business – diversified		70,365		69,940		425		70,504		72,409		(1,905	)
Other consumer – diversified		36,792		31,409		5,383		51,381		43,872		7,509
Other investments		6,473		6,473		—		5,768		5,768		—
Investments	$	240,285	$	226,010	$	14,275	$	228,961	$	219,417	$	9,544

The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of December 31, 2014 and 2013.

	2014
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	3,695	$	7	$	2,692	$	23	$	6,387	$	30
Corporate securities		43,996		1,604		9,293		1,361		53,289		2,965
Total temporarily impaired securities	$	47,691	$	1,611	$	11,985	$	1,384	$	59,676	$	2,995

	2013
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. Government agencies and authorities	$	8,326	$	210	$	—	$	—	$	8,326	$	210
Obligations of states and political subdivisions		1,018		17		—		—		1,018		17
Corporate securities		92,049		3,714		6,938		1,264		98,987		4,978
Redeemable preferred stocks		704		41		—		—		704		41
Common and non-redeemable preferred stocks		3,724		560		—		—		3,724		560
Total temporarily impaired securities	$	105,821	$	4,542	$	6,938	$	1,264	$	112,759	$	5,806

The evaluation for an other than temporary impairment is a quantitative and qualitative process, which is subject to risks and uncertainties in the determination of whether declines in the fair value of investments are other than temporary. Potential risks and uncertainties include, among other things, changes in general economic conditions, an issuer’s financial condition or near term recovery prospects and the effects of changes in interest rates. In evaluating a potential impairment, the Company considers, among other factors, management’s intent and ability to hold the securities until price recovery, the nature of the investment and the expectation of prospects for the issuer and its industry, the status of an issuer’s continued satisfaction of its obligations in accordance with their contractual terms, and management’s expectation as to the issuer’s ability and intent to continue to do so, as well as ratings actions that may affect the issuer’s credit status.

During the years ended December 31, 2014 and 2013, the Company recorded impairments related to the following investments.

	2014			2013
Common and non-redeemable preferred stocks	$	196		$	—

As of December 31, 2014, securities in an unrealized loss position primarily included certain of the Company’s investments in fixed maturities within the other diversified business, other diversified consumer and financial services sectors. Securities in an unrealized loss position reported in the other diversified business sector included gross unrealized losses of $1,416 related to investments in fixed maturities in the oil and gas industry. The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, including those described above, the Company has deemed these securities to be temporarily impaired as of December 31, 2014.

The following describes the fair value hierarchy and provides information as to the extent to which the Company uses fair value to measure the value of its financial instruments and information about the inputs used to value those financial instruments. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad levels.

Level 1

Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. The Company’s financial instruments valued using Level 1 criteria include cash equivalents and exchange traded common stocks.

Level 2

Observable inputs, other than quoted prices included in Level 1, for an asset or liability or prices for similar assets or liabilities. The Company’s financial instruments valued using Level 2 criteria include significantly all of its fixed maturities, which consist of U.S. Treasury securities and U.S. Government securities, obligations of states and political subdivisions, and certain corporate fixed maturities, as well as its non-redeemable preferred stocks. In determining fair value measurements using Level 2 criteria, the Company utilizes various external pricing sources.

Level 3

Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Fair value is based on criteria that use assumptions or other data that are not readily observable from objective sources. The Company’s financial instruments valued using Level 3 criteria consist of a limited number of fixed maturities. As of December 31, 2014 and 2013, the value of the Company’s fixed maturities valued using Level 3 criteria was $2,214 and $1,991, respectively. The use of different criteria or assumptions regarding data may have yielded materially different valuations.

As of December 31, 2014, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	—	$	212,674	$	2,214	$	214,888
Equity securities		13,148		5,776		—		18,924
Cash equivalents		15,009		—		—		15,009
Total	$	28,157	$	218,450	$	2,214	$	248,821

As of December 31, 2013, financial instruments carried at fair value were measured on a recurring basis as summarized below:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed maturities	$	—	$	199,312	$	1,991	$	201,303
Equity securities		16,406		5,484		—		21,890
Cash equivalents		31,618		—		—		31,618
Total	$	48,024	$	204,796	$	1,991	$	254,811

The following is a roll-forward of the Company’s financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) from January 1, 2013 to December 31, 2014.

	Fixed Maturities			Derivative (Liability)
Balance, January 1, 2013	$	2,124		$	(141	)
Total unrealized gains (losses) included in comprehensive income		(133	)		141
Balance, December 31, 2013		1,991			—
Total unrealized gains included in comprehensive income		223			—
Balance, December 31, 2014	$	2,214		$	—

The Company’s fixed maturities valued using Level 3 inputs consist solely of issuances of pooled debt obligations of multiple, smaller financial services companies. They are not actively traded and valuation techniques used to measure fair value are based on future estimated cash flows (based on current cash flows) discounted at reasonable estimated rates of interest. There are no assumed prepayments and/or default probability assumptions as a majority of these instruments contain certain U.S. government agency strips to support repayment of the principal. Other qualitative and quantitative information received from the original underwriter of the pooled offerings is also considered, as applicable. The Company’s derivative financial instrument was an interest rate collar which terminated on March 4, 2013, the stated maturity date, by its terms.

The amortized cost and carrying value of fixed maturities at December 31, 2014 and 2013 by contractual maturity were as follows. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	2014				2013
	Carrying Value		Amortized Cost		Carrying Value		Amortized Cost
Due in one year or less	$	1,000	$	1,000	$	—	$	—
Due after one year through five years		16,523		15,891		11,709		11,097
Due after five years through ten years		114,620		112,381		108,358		107,846
Due after ten years		64,990		61,704		76,882		77,884
Varying maturities		17,755		16,592		4,354		4,390
Totals	$	214,888	$	207,568	$	201,303	$	201,217

Investment income was earned from the following sources:

	2014			2013
Fixed maturities	$	9,720		$	9,890
Equity securities		510			632
Other		137			287
Total investment income		10,367			10,809
Less investment expenses, included in other expenses		(536	)		(474	)
Net investment income	$	9,831		$	10,335

A summary of realized investment gains (losses) follows:

	2014
	Fixed Maturities			Equity Securities			Total
Gains	$	2,449		$	—		$	2,449
Losses		(665	)		(213	)		(878	)
Realized investment gains, net	$	1,784		$	(213	)	$	1,571

	2013
	Fixed Maturities			Equity Securities			Total
Gains	$	8,521		$	293		$	8,814
Losses		(45	)		(28	)		(73	)
Realized investment gains, net	$	8,476		$	265		$	8,741

Proceeds from the sales of investments were as follows:

	2014		2013
Fixed maturities	$	75,244	$	107,728
Equity securities		—		972
Other investments		197		45
Total proceeds	$	75,441	$	108,745

The Company’s bond portfolio included 83% investment grade securities, as defined by the NAIC, at December 31, 2014.